CMBS Delinquency Rate Ticks Upward: Trepp

(Illustration courtesy of Trepp)

The CMBS delinquency rate rose modestly in January, increasing 15 basis points to 4.66%, according to Trepp, New York.

CMBS delinquencies peaked at 10.34% in July 2012. The rate also reached 10.32% in June 2020 during the COVID-19 pandemic.

Delinquencies in the heavily watched office sector experienced their most significant increase since September, jumping 48 basis points to 6.30%, Trepp reported.

On the other side of the coin, the multifamily sector’s delinquency rate declined 71 basis points during the month. Trepp attributed the decline to a large 2019-vintage single-asset, single-borrower apartment loan in San Francisco that was disposed in January.

“If we included loans that are beyond their maturity date but current on interest, the delinquency rate would be 5.62%, up 13 basis points from December,” Trepp’s February CMBS Delinquency Report said.

The percentage of loans in the 30 days delinquent bucket increased one basis point in January to 0.24%.

Assuming defeased loans are part of the denominator, Trepp said the overall CMBS delinquency rate is up 172 basis points year-over-year and the percentage of loans considered seriously delinquent (60-plus days delinquent, in foreclosure, REO, or non-performing balloons) increased 14 basis points to 4.42.

“If defeased loans were taken out of the equation, the overall headline delinquency rate would be 4.88%, up 16 basis points from December,” Trepp said.